Question

The following items could appear on a bank​ reconciliation: a. Outstanding​ checks, $670. b. Deposits in​ transit, $1,500. c. NSF check from​ customer, no.​ 548, for​ $175. d. Bank collection of note receivable of​ $800, and interest of​ $80. e. Interest earned on bank​ balance, $20. f. Service​ charge, $10. g. The business credited Cash for​ $200. The correct amount was​ $2,000. h. The bank incorrectly decreased the​ business's by​ $350 for a check written by another business. Classify each item as​

(1) an addition to the book​ balance,
(2) a subtraction from the book​ balance,
(3) an addition to the bank​ balance, or​
(4) a subtraction from the bank balance.

Answer 1

A) a subtraction from the bank​ balance

B) an addition to the bank​ balance

C) a subtraction from the book​ balance

D) an addition to the book​ balance

E) an addition to the book​ balance

F) a subtraction from the book​ balance

G) a subtraction from the book​ balance

H) an addition to the bank​ balance